Democrats' first budget in 4 years increases spending, taxes

This is a rush transcript from "Hannity," March 14, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: It appears the Senate Democrats are taking a page out of President Barack Obama's play book and are proving yet again that they have no intention of taking real action to bring down our debt or balance our budget.

Now in just a moment, Austin Goolsbee will join me and try and defend his party. But first, here's the background. Let's remember that the president said this earlier this week.

(BEGIN VIDEO CLIP, "GMA"/ABC, MARCH 12)

GEORGE STEPHANOPOULOS: Paul Ryan today put forward his budget and he says, he is challenging you to come forward with a budget that also reaches balance. Are you going to do that?

PRESIDENT BARACK OBAMA: No. We're not going to balance the budget in ten years, because if you look at what Paul Ryan does to balance the budget, it means that you have to voucherize Medicare. You have to slash deeply into programs like Medicaid. My goal is not to chase a balanced budget just for the sake of balance.

(END VIDEO CLIP)

HANNITY: No, let's not do that. Our commander-in-chief obviously doesn't think we need a balanced budget, and his Democratic cohorts in the Senate appear to agree with him.

Now, yesterday, Senator Patty Murray, the Democratic chair of the Senate Budget Committee, finally released their liberal budget plan, and over the next 10 years under their budget, government spending would increase by over $2 trillion.

Now, let's put that in perspective, that is a 58 percent increase. But that's not all. The Republicans on the Senate Budget Committee also crunched the numbers, and under the Democrats' plan over the next 10 years, they would raise taxes by very alarming $1.5 trillion. They just raised taxes.

Now, I don't understand, why would anyone think this budget is a good idea?

Well, maybe somebody who does is the former chair of the President's Council of Economic Advisers, professor at the University of Chicago Booth School of Business, apparently uses one of those Washington calculators, Austan Goolsbee. How are you, sir?

AUSTAN GOOLSBEE, UNIVERSITY OF CHICAGO: Hey, it's great to see you again, Sean. I thought you were going to describe the thank you note that you were about to write to the president for cutting government spending at a faster rate than any time since the demobilization of World War II.

HANNITY: Amazing, you know, the six trillion in debt.

Tonight, I've got to -- you're used to giving your students quizzes and tests, right?

GOOLSBEE: Here we go. Yes, I am.

HANNITY: No, no. This is the Hannity intellectual honesty test, and we're going to see our good of a political spin artist you are, because you're such close friends--

GOOLSBEE: I am not a spin artist.

HANNITY : -- you're so close friends with Barack Obama --

GOOLSBEE: I have a PhD in economics, I'm not a spin artist.

HANNITY: I'm shocked he wasn't elected pope yesterday.

All right. Here's point number one. All right. This week, we're going to play the president talking about balanced budgets and the debt with George Stephanopoulos, and then we'll going to play candidate Obama in 2008 and you tell me why things sounds so different.

GOOLSBEE: I know where this is going.

HANNITY: Watch this.

(BEGIN VIDEO CLIPS)

OBAMA, MARCH 12: I think what is important to recognize is that we've already cut $2.7 trillion out of the deficit. If the sequester stays in, you have got over three-and-a-half trillion dollars of deficit reduction already. And so, we don't have an immediate crisis in terms of debt. In fact, for the next 10years, it's going to be in a sustainable place.

OBAMA, JULY 3, 2008: The problem is, is that the way Bush has done it over the last eight years, is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents, number 43 added $4 trillion by his lonesome. So we now have over $9 trillion of debt that we are going to have to pay back. Thirty thousand dollars for every man, woman, and child. That's irresponsible. That's unpatriotic.

(END VIDEO CLIPS)

HANNITY: So, this week he is not going to balance the budget. We don't have a debt crisis, we're headed to $17 trillion in debt under his watch. What happened that's irresponsible and unpatriotic?

GOOLSBEE: Hold on.

HANNITY: No, no, what happened? I want to hear your best spin. Go.

GOOLSBEE: OK. There's no spin. We have a disagreement about that speech from the campaign, which was about why it's unpatriotic to blow your emergency fund when there's not an emergency.

HANNITY: Forget that. What about the credit card to the Bank of China in the name of our kids.

GOOLSBEE: Yes. That's the whole point. Is that, we had gone through the 2000s with relative prosperity. That's not the time to blow your reserve fund, it's unpatriotic because it leaves you nothing in the tank in case of emergency --

(TALKING OVER EACH OTHER)

HANNITY: Maybe you forgot 9/11 happened, maybe you forgot we fought two wars --

GOOLSBEE: -- like the emergency of the biggest downturn of our lifetime.

HANNITY: OK. All right.

GOOLSBEE: Of course the deficit went up, we had a huge recession.

HANNITY: All right. So, $9 trillion in debt is bad. Seventeen trillion we come up with every excuse we can.

GOOLSBEE: Nine trillion when you're not in recession is bad.

HANNITY: All right.

Now, Obama, you know, he is making a point about the issue of having to close down the White House, poor school children can't go, and even though we're spending more money this year than last year, he's saying, he had to close it down. I think he is trying to inflict as much pain as possible to make a political point. But who do you think is telling the truth here, Obama or Jay Carney? Because they're contradicting themselves. Watch.

(BEGIN VIDEO CLIPS)

OBAMA, MARCH 12: You know, I have to say, this was not a decision that went up to the White House, but what the Secret Service explained to us was that they're going to have to furlough some folks.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY, MARCH 13: He had to cancel the tours. It's our job to cancel the tours. They cannot cancel them. This is not a tour of the Secret Service building, it's a tour of the White House and the grounds, and we run the tours and the invitations and that process, so the White House as we have said cancelled the tours.

(END VIDEO CLIPS)

HANNITY: All right. I'll give you my opinion. The guy that blames Bush, the tsunami, earthquakes, the guy that blames kiosk, ATM machines, Fox News, Sean Hannity, Karl Rove, Ed Gillespie, and talk radio and now blames the Secret Service. I'm going with Jay Carney telling the truth here. Why are they contradicting each other?

GOOLSBEE: What am I, the docent director? I don't know anything about that. I know he was right when he was blaming Sean Hannity, but that was a while ago that he did that.

Look, the thing is here, Sean, if you like Paul Ryan's budget then you should be honest about it and get up and say, to keep taxes at the lowest share of income that they've been in 50 yours -- which is what they've been over the last two or three years -- I'm willing to squeeze and crush Medicaid and Medicare to keep the taxes out low. That's fine.

(TALKING OVER EACH OTHER)

HANNITY: He already gut Medicare, $700 billion.

GOOLSBEE: That's the honest thing to say. But don't try to say, oh, no, I'm not going to cut government spending in order to keep the taxes low, because I think that's -- just be honest about it.

HANNITY: Paul Ryan increases spending every year for 10 years, 3.4 percent. Balanced budget for 10years. Democrats, they give us trillions in debt, trillions more. We would have six trillion in Obama debt.

GOOLSBEE: The population is aging, Sean. That's what I said about Medicare and Medicaid.

(TALKING OVER EACH OTHER)

HANNITY: Old people's fault. I should have known. It's not Bush's fault. It's the old people for getting old.

GOOLSBEE: It's not -- the aging of the population is not a secret. The baby boom has been noted since 1946.

HANNITY: Part three of the exam. You got an F on part one and two.

The Obamas live a pretty lavish lifestyle. He vacations in --hits balls with Tiger, she vacations in beautiful Aspen. They go to Martha's Vineyard and they take separate planes, they come home separately. They go a lot to Hawaii. It's costing us a lot of -- Beyonce, Adele are going to the White House.

All right. So, Jonathan Karl is saying, you know, what if we may be cut back on some of the extravagance so that the little children, who the president claims to care about so much and shared sacrifices, that they can go back to the White House. Let's watch this go down with Jonathan Karl.

(BEGIN VIDEO CLIP)

JONATHAN KARL, CHIEF WHITE HOUSE CORRESPONDENT, ABC NEWS: The Secret Service told us the tours cost $74,000 a week. How much is it going to cost the president to travel this week to Illinois?

CARNEY: The president is the president of the United States and he is elected to represent all of the people, and he travels around the country appropriately. I don't have a figure on the cost of presidential travel. It is obviously something, every president deals with because of security and staff, a significant undertaking. But yes, the president has to travel around the country. He has to travel around the world. That is part of his job.

KARL: How much does it cost for him to go and play golf?

CARNEY: John, again, you know, you're trivializing an impact here. People will lose their job, three-quarters of a million people were lose their jobs.

KARL: This is about choices.

(END VIDEO CLIP)

HANNITY: Now, "President Change" likes the lecture about shared sacrifice, with skin in the game. Maybe not playing golf with Tiger, 341 people would not have been furloughed. Why didn't he give it up?

GOOLSBEE: I don't know. I agree with you, everybody should share the sacrifices, they should evaluate, you know, whatever the presidential prerogative trips, et cetera are. I think this event in Illinois is about an energy policy. That's actual policy event, that strikes me as something totally different.

But look, that's a fair point for everybody, not just the president.

HANNITY: I'll give the president a free gotomeeting.com account with HD faces and you can do it -- I'll give him one free.

GOOLSBEE: I don't know if they're allowed to endorse, you know, one company. I do know Donald Trump, you probably saw Donald Trump announce that he is willing to pay for the White House tours. I think they wanted to say, "Brought to you by Donald Trump."

HANNITY: He offered a week, and I offered a week, and Donald Trump is offering $5 million.

GOOLSBEE: Brought to you by Sean Hannity.

HANNITY: Yes, one week.

GOOLSBEE: I will give you a tour. I can remember this stuff, and I'll point out that the Lincoln bust that Nancy Reagan used to love. I'll show you the whole thing, Sean. I've tried to get you to come out here to a Bears game with me --

HANNITY: You mean back in the days that we were prospering?

(TALKING OVER EACH OTHER)

GOOLSBEE: -- I've tried to get you to go to dinner with me. I'll give you a tour. Why won't you talk to me, Sean?

HANNITY: I know one way to get into the Obama White House, if you donate 500 grand you get quarterly meetings.

GOOLSBEE: That is not true.

HANNITY: That is true. That's what they advertise.

All right. I'm going to give you a D-minus.

GOOLSBEE: That's a passing grade.

HANNITY: Well, all right. If you're proud of it, that's fine.

GOOLSBEE: My friends are going to be mad at me, Sean, they're going to say, "Sean Hannity gave you a passing grade."

HANNITY: I'm being charitable. See, I'm a compassionate conservative.

GOOLSBEE: I have a football in my house in which you signed that you said, I am a great American. I'll remember to bring that the next time I'm on.

HANNITY: I did say that. You're a great American, just wrong about everything political, but I got roll. Good to see you.

GOOLSBEE: See you later.

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